Why Cannabis Stocks Are Soaring After Tuesday’s Midterm Elections

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Contributor, Benzinga
December 1, 2022

The cannabis sector just got a boost on November 8, 2022, and everyone in the industry stands to benefit. Companies like Bud Love that enhance the cannabis experience without pushing regulatory boundaries have the most to gain. Bud Love products are free of cannabis, THC and nicotine but contain proprietary blends that amplify the effects of cannabis flower and reduce the unwanted side-effects. 

Stocks from companies providing cannabis and cannabis-related products, such as Bud Love, have surged as more pro-legalization candidates won key governor’s races across America and other pro-cannabis candidates notched victories.

In Minnesota, the newly re-elected governor Tim Walz promised that marijuana legalization is one of the first bills that will pass in 2023. Voters in Maryland and Missouri passed initiatives to decriminalize marijuana. The future burns bright for all parties betting on this industry.

Pot Stocks Open Doors for Cannabis Startups Like Bud Love

Who will benefit? One of North America’s biggest so-called “pot stocks,” is Canopy Growth Corp. (NASDAQ: CGC), a producer and distributor of medical and recreational cannabis products. CGC has risen 40% since Wednesday afternoon – including a further 9% jump on Friday’s trading.

Aurora Cannabis Inc. (NASDAQ: ACB) was up by 17% on Friday alone – and the cannabis-company exchange-traded fund (ETF), Cannabis ETF (NYSEARCA: THCX), rose over 6%, indicating that the entire sector has seen an end-of-week boost.

This isn’t the first time that pot stocks have soared after a midterm election – Tilray, Canopy and Aurora surged in the weeks leading up to 2018’s midterms, with Tilray rising 700% in a few weeks. But anyone seeking to capitalize on that marijuana boom had to be both nimble, lucky, and have extremely high risk tolerance as an investor – each of those stocks crashed 70% or more in the months following those euphoric highs.

Pot stocks and startups soar after the  2022 midterm elections.

Sidestep Regulatory Risks With Bud Love

Could this time be different? For now, markets seem to think so. The cannabis sector is projected to grow from $28.2 billion in 2021 to $197.7 billion by 2028. Clearly, there’s massive potential for a company like Bud Love that harnesses this exponential growth, especially with looser restrictions, less regulation and friends in high places.

So what are investors hoping to profit from the ongoing marijuana boom to do?

One way to sidestep marijuana prohibition would be to invest in a cannabis company that doesn’t use any THC in its products.

Bud Love is such a company. It is a pioneer with the world’s first-ever mixer for cannabis. Its premium herbal+ mixers, introduced in mid-September, are available in eight flavors to complement different cannabis strains and seek to give millions of people worldwide a new and better way to enjoy cannabis. Bud Love takes a great experience to a new level, facilitating user control that makes for the exact smoking experience desired and easing the paranoia and anxiety that sometimes result from certain types of flower. 

Bud Love’s product is legal in America, which spares it all the headaches and regulatory hurdles that traditional cannabis businesses face. It also has set a target gross margin of over 75% for its product.

Management hopes to hit a revenue target of $100 million by 2026 – and while this isn’t guaranteed, there are auspicious signs the company could win over a loyal, global following. Studies have shown that 80% of consumers preferred cannabis with Bud Love.

Bud Love cannabis stocks offer entry into a $400 billion industry.

If these numbers prove accurate in the international market, the company could have a shot at claiming a stake in the $400 billion global cannabis market.

The projected marijuana boom of the 2020s will create industry behemoths in the global cannabis market, but these entities will face regulatory hurdles that Bud Love can sidestep.For more information on how to own a stake in the cannabis mixer revolution, click here.